Burger King is making significant strides in its brand modernization efforts, having already completed 370 restaurant remodels in 2024. The company is well on track to reach its goal of transforming 85% of its locations by 2028, with over half of the remodels already finished.
The fast-food chain’s efforts are part of its broader “Reclaim the Flame” initiative, which was launched in late 2022 to revitalize the brand. On a recent earnings call, Josh Kobza, CEO of Restaurant Brands International (Burger King’s parent company), shared that the chain had exceeded expectations, reaching the halfway point of its remodeling targets ahead of schedule.
Burger King’s ambitious remodeling program includes upgrading around 80 restaurants to the company’s most advanced store concept, known as the Sizzle model. These locations have shown impressive sales growth, helping the company to achieve a 1.5% increase in U.S. comparable sales during the fourth quarter of 2024. This performance stands in contrast to its competitor McDonald’s, which saw a 1.4% decline during the same period, largely due to an E. coli outbreak tied to contaminated onions on its Quarter Pounders.
The remodeling efforts come after a challenging period for the brand, which faced significant setbacks, including franchisee bankruptcies and an outdated restaurant system. In fact, Burger King had predicted the closure of up to 400 locations in 2023. However, the revitalization program has delivered a strong sales rebound.
Out of the 370 remodeled locations, about 220 have been open for more than six months and are seeing mid-teens percentage growth in sales year-over-year, with further improvements in franchisee profitability, Kobza explained.
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Looking forward, Restaurant Brands International is doubling down on its expansion plans. In 2024, the company acquired Carrols Restaurant Group, its largest franchisee, for $1 billion. This acquisition included 1,022 Burger King locations and 60 Popeyes restaurants. The company plans to accelerate the remodeling and refranchising of these locations, aiming to complete the refranchising process two years ahead of schedule by 2025.
As part of its broader “Reclaim the Flame” initiative, Burger King has invested heavily in digital and media strategies. The first component of this effort, known as “Fuel the Flame,” involved a $150 million investment in U.S. advertising and digital enhancements, including a $120 million spend on advertising and $30 million on developing its mobile app. The app now offers integrated payment processing, an upgraded Royal Perks loyalty program, and more personalized offers for customers.
Additionally, the second phase of the initiative, “Royal Reset,” involves a $250 million investment aimed at updating around 3,000 restaurants. This includes upgrading kitchen equipment, improving restaurant technology, and enhancing the overall customer experience. The company has also earmarked $200 million to remodel around 800 locations as part of its store refresh program.
As Burger King focuses on modernizing its brand, other fast-food chains are also exploring new strategies. Wendy’s, for example, has spent $53 million to overhaul its drive-thru system, although some customers have criticized the changes. Meanwhile, Chipotle is planning two controversial adjustments, with rumors suggesting potential reductions in portion sizes and price increases.
With a clear vision for the future, Burger King is positioning itself to make a strong comeback and stay competitive in the fast-food industry.
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